Service tax on hired Tractor with Trolley

[Guest]

Dear Sir,

Please explain service tax on hired tractor with trolley. Service tax levied or not??

Thanks & Regards,

Sanjay Vasava

[YAGAY andSUN]

It will depend on the following aspects, viz:

1. Effective possession and control
2. Service Provider whether crossed the Threshold limit or not.
3. Whether Right to use was involved or not?

[Rajagopalan Ranganathan]

Sir,

Service tax is leviable under "Tangible Goods Supply Service".

[YAGAY andSUN]

Recently CBEC has provided clarification on this aspect, which is being reproduced for your ready reference

Circular No 198/08/2016-Service Tax New Delhi, the 17^th August, 2016

[Ganeshan Kalyani]

If service tax is paid on such transaction then sales tax is not applicable and vice-versa.

AI Summary

Service Tax Applicability on Hired Tractor with Trolley Discussed; Key Factors Include Possession, Control, and Threshold Limits A query was raised regarding the applicability of service tax on a hired tractor with a trolley. The responses highlighted several considerations: whether effective possession and control were transferred, whether the service provider exceeded the threshold limit, and if the right to use was involved. It was noted that service tax could be applicable under 'Tangible Goods Supply Service.' A recent CBEC circular provided further clarification. Additionally, if service tax is applicable, sales tax would not be, and vice-versa.